Trump invokes Defense Production Act to expand oil production and refining

President Donald Trump on Thursday invoked the Defense Production Act to boost U.S. oil production, refining and fuel logistics, declaring that capacity essential to national defense.

What the order does

The presidential determination, published by the White House on Oct. 22, finds that private industry cannot expand the capacity quickly enough on its own. It cites tight financing, long lead times, permitting delays and supply-chain limits.

It directs the Secretary of War to use purchases, purchase commitments and other financial tools to support projects in four areas:

• Exploration and production
• Gathering and transmission pipelines
• Storage
• Marine terminals

The order waives several of the Cold War-era law's usual requirements and ties the action to the national energy emergency Trump declared on Jan. 20, 2025.

Vice President JD Vance said the administration plans to use the law to expand the Delek US Holdings refinery in Tyler, Texas, NTD News reported.

Prices at the pump

The national average for regular gasoline stood at $4.27 a gallon on Oct. 22, according to AAA. NTD, citing AAA, put average diesel at $6.30. Oil prices have climbed since the war with Iran began in February, NTD reported.

Early Friday, Brent crude futures traded near $113 a barrel and U.S. crude near $99, close to their highest levels since early May, Investing.com reported. Both were up about 3% for the week.

On Truth Social, Trump accused Iran of trying to push oil prices higher before the Nov. 3 midterm elections, according to NTD. Energy costs and inflation are among the top issues for voters this fall.